But the damage control may be coming too late — not for Steele, whose job seems safe, but for the RNC itself.

The RNC's latest made-for-Jon Stewart sex-related slip-ups — combined with Steele's previous string of well-publicized gaffes and missteps — are threatening to damage the party's already lagging fundraising efforts. And that could limit the number of races Republicans win in what's otherwise shaping up to be a good year for the GOP.

“Raise more money, talk less,” said longtime GOP lobbyist Ed Rogers, voicing the sentiment of at-their-wits'-end Republican professionals. Steele "is in a fragile situation. He and his organization must be very sure-footed and quiet for the next few months.”

But the RNC suffered another blow Thursday, when POLITICO reported that one of the party's fundraising letters mistakenly directed would-be donors to call a telephone number belonging to a phone-sex operation.

Recognizing the damage they've suffered from the bondage-club story — and the need to mollify fretful donors, activists and operatives — RNC officials are reorganizing the way the party approves expenditures and are bringing in former RNC chief counsel Tom Josefiak to head the process.

Josefiak will work to tighten RNC spending while scrutinizing committee spending practices closely, according to New Jersey Republican Committeeman David Norcross, who spoke with Steele on Thursday afternoon.

Norcross said that Josefiak's mission is to crack down on the kind of accounting practices that allowed a nearly $2,000 expense at Voyeur to show up on the party’s fundraising disclosure form.

"That should have never happened," Norcross said. RNC spokesman Doug Heye confirmed Thursday night that the party was making changes in its "review and approval process" — "per Chairman Steele's direction."

But the most consequential development of the RNC’s unholy mess of a week didn’t involve leather or naughty talk but, rather, the sharply worded comments from one of the most prominent social conservative leaders in the party. Family Research Council President Tony Perkins used his regular newsletter to members to urge them to stop giving money to the national GOP.

"This latest incident is another indication to me the RNC is completely tone-deaf to the values and concerns of a large number of people they are seeking financial support from,” Perkins wrote.

Perkins’s comments won’t suddenly dry up fundraising from the party’s Christian conservative base. But by going public, he offers cover to other Republican leaders and activists to stop giving to the committee.

The RNC’s public relations fiascoes also make the party’s image-conscious politicians want to keep their distance from the committee — which in turn deprives the committee of fundraising draws.

A high-dollar reception slated to coincide with the Southern Republican Leadership Council’s meeting next week in New Orleans, for example, right now does not include any of the party’s biggest names. And the effort to lure contributors by highlighting “invited guests” on the invitation — a time-honored fundraising sleight of hand — blew up when Sarah Palin’s camp told POLITICO that they had twice asked the committee to remove her name.

But the RNC suffered another blow Thursday, when POLITICO reported that one of the party's fundraising letters mistakenly directed would-be donors to call a telephone number belonging to a phone-sex operation.

Recognizing the damage they've suffered from the bondage-club story —- and the need to mollify fretful donors, activists and operatives — RNC officials are reorganizing the way the party approves expenditures and are bringing in former RNC Chief Counsel Tom Josefiak to head the process.

Are you having half as much fun as I watching the utter implosion of what used to be respectfully called. "the party of Abraham Lincoln"? I have got to be honest with you: I'm lovin' every moment of this! The Steele saga is merely another straw that is in the process of breaking the elephant's back. The hysterically funny thing is that they wouldn't dare fire the silly man or even ask him for his resignation. How could they? The first African American chairman of a national political party? That wouldn't look to good now, would it?

He is only there because a year ago the Republican party desperately needed a black face to be the symbol of opposition to the Obama administration. The choice of Michael Steel as chair of the RNC was not, as many have claimed, an example of the GOP's "racial sensitivity". Trust me on this one, if they were as racially sensitive as they claim they would not have hired the dumbest black guy they could possibly find.

Are you having half as much fun as I watching the utter implosion of what used to be respectfully called. "the party of Abraham Lincoln"? I have got to be honest with you: I'm lovin' every moment of this! The Steele saga is merely another straw that is in the process of breaking the elephant's back. The hysterically funny thing is that they wouldn't dare fire the silly man or even ask him for his resignation. How could they? The first African American chairman of a national political party? That wouldn't look to good now, would it?

He is only there because a year ago the Republican party desperately needed a black face to be the symbol of opposition to the Obama administration. The choice of Michael Steel as chair of the RNC was not, as many have claimed, an example of the GOP's "racial sensitivity". Trust me on this one, if they were as racially sensitive as they claim they would not have hired the dumbest black guy they could possibly find.

You knew it was only a matter of time before the party of self righteous numsckulls would start to implode. They have been so busy starting rumors and spreading lies about the other party they took their eye of the ball. They should understand that they are in a party of opportunist. The republican paarty has become the party of liars. Led by Karl Rove, Dick Cheney and now Michael Steele. They actually believe it they say it enough it will become true. Unfortunately it seems they have some followers who take the bait hook line and sinker. This may be the true "Armaggedon" but for the republican party, that Boehner was talking about, he just got his evens mixed up.

OH YA YOU FOLKS KEEP SENDING YOUR HARD EARNED DOLLARS IN, THEIR ALL ABOUT LOOKING OUT FOR YOUR BEST INTEREST!!!

But, assuming you mean the deficit, he did not triple that either. It was forecasted to be over $1 trillion before he even took office due in large part to lower revenue from the recession. A recession that started in 2007 and accelerated in Sept 2008. Hardly Obama's fault.

It was forecasted to be over $1 trillion before he even took office due in large part to lower revenue from the recession.

i guess I am wrong. I did mean the deficit and the so called stimulus certainly has not helped it. And, it is only going to get worse by his reckless spending policies. Oh that's right, he did state that he would go line by line and focus on the money being spent on earmarks. Please dude. Oh yes and how many people believe that the HCB will save us money?

What is a shame is, both parties STINK in the moral bankruptcy department. They are all part of and infected by the DC corruptness. Both the GOP and DEM have abandoned their platforms and both lack "character" (which btw does matter) integrity, truthfulness among others... No party is good. Our country has lost its moral compass and if we don't return to what made this country great and what our Founders designed we will FAIL! We have a serious heart problem where the cancer began and has spread to every organ and systemic system of DC. DC is a cesspool of POWER, GREED and CONTROL lining their own pockets and supplying their own gratifications at the taxpayers expense and with contributions. It is no longer about the constituents They put themselves above the people they serve.. They wouldn't know what servant leadership is if it bit them in their rear ends. And they wonder why the Tea Party or for that face the Constitution Party, the Libertarian Party all these other parties have formed .

What the people need to do is to quit VOTING based on party affiliation but VOTE on the Candidate but VOTE on the person, character, experience, past voting records and YES associations (Remember the old saying "You are judged by the company you keep) Weigh the candidate against biblical principles. We need fresh ideas and fresh faces in DC people who are working people, business men and women, ranchers, farmers, school teachers, nurses people with common sense running for office. Nothing against Harvard grads but somewhere along the road these overly educated know it all (s) have lost common sense and good judgment. Education does NOT necessarily make the person. But most importantly we need to hear this verse and do what it calls us to do:

2 Chronicles 7:14 if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then will I hear from heaven and will forgive their sin and will heal their land.

All the sniffy looking down their nose, condscending left wing elitists thinking Obama's expansion of government , combined with the UnConstitutional mandates of Obamacare with the 16,000 IRS agents enforcers,,, takeover of the student loan industry is good for America. Sniff, watch Jon Stewart, stiff,""" we know what's best for the American people" We bribed for yes votes thru Congress..

Steele had a bad week but at least he's not the one expanding government to the of giganti-Gov, and at least he's not acting like a mocking condescending Pharoh-Obama beating on Israel, and flogging/mocking the minions while overspending more money than the CBO can project,,,,,,,(,just wait for the VAT tax), and no,,, Liberal lefties, we minions do not think all this is good for us,, that's why there is a Tea Party. Steele knows that ultimately the people will decide in Nov and 2012.

Since all candidates now raise money for themselves online, this drop in contributions to the RNC doesn't seem to be indicative of much beyond the fact that many people are now giving to their preferred candidates regardless of state. It probably means that the RNC will have less control over which candidates are allowed, or encouraged, to run, but that is all to the good. It is in keeping with the new mood of independence and participation. Scott Brown raised funds from all 50 states. Rand Paul is doing the same, so is Marco Rubio, J.D. Hayworth---it's happening everywhere. It's good news--for the RNC and for everyone. Parties will have to re-focus and people will spend their money to support their principles. GREAT.

Recognizing the damage they've suffered from the bondage-club story —- and the need to mollify fretful donors, activists and operatives — RNC officials are reorganizing the way the party approves expenditures and are bringing in former RNC Chief Counsel Tom Josefiak to head the process.

Josefiak will work to tighten RNC spending while scrutinizing committee spending practices more closely, according to New Jersey Republican Committeeman David Norcross, who spoke with Steele Thursday afternoon.

Norcross said that Josefiak's mission is to crack down on the kind of accounting practices that allowed a nearly $2,000 expense at Voyeur to show up on the party’s fundraising disclosure form.

"That should have never happened," Norcross said. RNC spokesman Doug Heye confirmed Thursday night that the party was making changes in its "review and approval process" — "per Chairman Steele's direction."

it's all too funny! aside from bringing in the former RNC chief counsel, the GOP has thought it a great idea to setup a "shadow" RNC headed by mike duncan, steele's predecessor. this is the guy who let $150,000 worth of campaign contributions out the door to fund palin's 5th ave shopping spree during the '08 campaign. additional, this shadow RNC will be advised by none other than "i've got the math" karl rove.

so the guy who was elected RNC chair, many believed as a token of diversity, can't be fired for mismanagement- cause how would that look? so what does the GOP do? they establish a shadow RNC made up of even more big spending losers. heck, if you can't run a national party who do you think, outside the "base", will believe you can run the country?!! the financial woes of the RNC is characteristic of how the GOP ran the country into a financial train wreck. yeah, tell me all about big spending liberals...